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PERCEIVED FAIRNESS OF PERFORMANCE APPRAISAL SYSTEM
AND PERSONAL FACTORS– A CONCEPTUAL DEBATE
Sangeetha Vasudevan
Loyola Institute of Business Administration
Loyola College, Chennai, Tamil Nadu, INDIA
I. Introduction
Effective human resource management is essential for organisations to achieve their work aims (Inayet et al,
2008). Work organisation, personnel selection, training, promotion, career planning, performance appraisal, pay,
and motivation define the scope of human resources management as determinants in developing harmonious
relationships between the organisation and its employees (Bernardin and Russell, 1998).
The issue of employees' performance in furtherance of organizational objectives has occupied management
attention for long. Differences in levels of performance have been attributed to differences in skills and abilities
on the one hand, and to different theories of money on the other. (Frank et al. , 2011)
One of the essential elements in employee related decision making for an organisation is Performance
Appraisal. Performance Appraisal is one of the most commonly used tools in the Indian scenario. Specific to
the Indian IT Sector, Performance Appraisal is a cyclical/ yearly event which is the evaluation methodology to
determine an employee’s reward and growth for the said accounting year, with respect to his/ her performance.
Performance appraisal is one of the most widely researched areas in industrial/organizational psychology
(Murphy & Cleveland, 1993). The traditional research agenda has however, contributed minimally to highlight
the utility of performance appraisal as an organizational and managerial tool. (Walsh, 2003).
In his comprehensive definition of Performance Appraisal, Walsh (2003) states , “Performance appraisal is a
process by which a superior evaluates and judges the work performance of a subordinate. Performance appraisal
systems include the processes and procedures involved in implementing, managing, and communicating the
events involved in performance appraisal. In many cases it is a formal process and is a part of the personnel
management policy.”
Research on performance appraisals (PA) spans an entire range of aspects and constructs that include
psychological empowerment (Conger and Kanungo, 1988; Çöl, 2008; Spreitzer, 1995; Thomas and Velthouse,
1990) bring the question of the level of impact of behavioral and psychological empowerment on job
satisfaction to the surface.
Employee empowerment is thought to enhance job satisfaction. For example, He et al. (2010) show that
employee empowerment has positive effects on perceived service quality and job satisfaction. There has been a
strong emphasis on the relation between psychological empowerment and job satisfaction in the studies
performed (Aryee and Chen, 2006; Kuoet al. , 2007; Sahin, 2007; Spreitzeret al. , 1997; Wang and Lee, 2009).
Behavioral empowerment, convenient communications, an atmosphere of trust, and motivational tools provided
by employers lead to a positive impact on job satisfaction (Babin and Boles, 1996; Yoon et al. , 2001).
Employee empowerment bridges the gap between decision-makers and employees and thereby shortens the time
duration of tasks. Any type of managerial style that can pave the way for developing the feeling of self-efficacy
will yield employee empowerment. Empowered individuals will have an enhanced role in the organization, will
take initiatives, and their participation in the activities of the organization will be enhanced.
Though research has focused on the psychological impact of job satisfaction and other constructs, little evidence
is found to connect employee performance appraisal perceptions and job satisfaction. An attempt is made in this
research to support this theory.
III. Conclusion
An attempt has been made in this research article to establish a conceptual debate centering around the various
aspects of the Big 5 Personality Traits, Job Satisfaction and their relationship with Perceived Employee
Appraisal Satisfaction. There are several other variables that have not been included in this research.
Organisational, System Related and other Job related factors have not been analyzed in depth.
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